Construction Act to be Exempt From Order Suspending Limitation Period

By April 13, 2020 news

Rob Kennaley April 10, 2020

Construction Act to Be Exempt From Order Suspending Limitation Period

Regulation 73/20, issued under Ontario’s Emergency Management and Civil Protection Act, ordered statutory limitation periods suspended as of March 16, 2020, for the duration of the COVID-19 state of emergency. A significant concern was that, if the Order were to apply to construction lien expiry timeframes, holdback funds would have to be retained from contractors and subtrades for the duration of the emergency, and beyond.
The stakes, of course, were high. In response to concerns raised both formally and informally, Ontario’s Attorney General, Doug Downey, announced yesterday that Regulation 73/20 would be amended to expressly remove the “procedural time periods under the Construction Act” from the scope of the prior Order, effective April 16, 2020. Significantly, the announcement is that all “limitation periods and procedural time periods under the Construction Act” be excluded from the Order’s operation. Although at the time of writing the actual amending Regulation has not been posted for public access, this will have significant consequences for those who participate in construction in Ontario.

Kennaley Law and Sherrard Kuzz LLP are hosting free webinars every Tuesday morning at 9am to review changes made to the construction industry due to Covid-19.  You can register for the webinars at www.kennaley.ca and click on Our Webinars tab.

 

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